Economic Integration Committee discusses new federal draft law to combat commercial concealment during its fourth meeting of 2022

H.E. Bin Touq: We continue to strive to develop national economy to achieve the UAE's economic vision for next 50

 The Economic Integration Committee held its 4th meeting for 2022, chaired by H.E. Abdulla bin Touq Al Marri, Minister of Economy, in the presence and with the participation of H.E. Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs; H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and the representatives of local economic development departments in all emirates of the UAE.

The Committee reviewed the Cabinet’s decision regarding amendments to its work tasks, especially with regard to the harmonization of federal and local economic procedures and regulations. The Minister of Economy explained that the Economic Integration Committee continues to strive to develop the national economy to achieve the UAE’s economic vision for the next 50 years. He noted that the Committee is a major platform to ensure the integration of economic policies and programs implemented by the UAE in accordance with the principles and objectives of the 50. He further highlighted its added importance under the new Cabinet decision as it has undertaken the harmonization of regulations and work mechanisms between the federal and local levels, and the follow up on coordination to enhance compatibility and integration of regulations and procedures in accordance with best practices. These are in line with local, regional and global economic developments and consolidate the UAE’s position as an attractive destination for business and economic activities.

H.E. Bin Touq further explained that the Committee's agenda addresses an important set of priority national economic issues such as consumer protection; follow up on the development of legislation related to anti-commercial concealment; comprehensive economic partnership agreements (CEPA); the efforts to develop the anti-money laundering system and organizing the ultimate beneficial owner (UBO) procedures; and joint action to enhance the UAE's position on global economic competitiveness indicators.

In addition, the Committee discussed means of cooperation between the member authorities to develop a new federal draft law to combat commercial concealment in the UAE, taking into account the developments in the business environment and the country’s new economic model, including the amendments to the Commercial Companies Law and the granting of 100% foreign ownership of projects and investments in all economic sectors except for a limited number of activities with a strategic impact, laws and mechanisms to combat money laundering and the UBO procedures.

Furthermore, the Minister of Economy was also briefed on the Committee's efforts regarding the implementation of the procedures and policies to enable sound commercial practices and consumer protection in the UAE’s markets, which establish a balanced relationship between suppliers and consumers in the country. In this regard, the Committee reviewed the new pricing mechanism for basic consumer goods approved by the Ministry of Economy, under which, basic commodities are divided into two main categories. The first category, which includes more than 11,000 goods, is subject to the condition of prior approval in the event that the supplier wishes to raise these commodities’ price as a result of the high import costs. Meanwhile, the second category, which includes a limited number of goods, is exempted from the requirement for pre-approval. The goods in this group are characterized by abundance and high price competitiveness, which guarantees multiple alternatives to these goods in various markets of the country, which in turn stabilizes their prices in a natural way according to market mechanisms. Besides, the meeting reviewed plans for inspection and control of markets during the next phase, underlining the importance of intensifying these efforts during the next stage to ensure best practices in accordance with Federal Law No. 15 of 2020 on consumer protection.

The latest Economic Integration Committee meeting also reviewed the progress of work and efforts made to address money laundering crimes through close and continuous coordination between the concerned authorities and international cooperation. These fall in line with efforts to enhance the country’s business environment, consolidate the attractiveness of the national economy, and support the UAE's leading position in global competitiveness indicators in line with the objectives of the ‘Projects of the 50.’

The Committee also reviewed the CEPA signed with India last February and the prospects for cooperation within the framework of this partnership, as well as the stages in the implementation of this agreement with Indonesia, Colombia, and Israel. It also discussed ways to accelerate the pace of consolidation of strategic partnerships with the rest of the target markets as part of the global economic agreements as part of the first set of the ‘Projects of the 50,’ aimed at expanding trade and investment partnerships with a number of global strategic markets. These partnerships are set to raise the volume of the UAE’s current trade exchanges with them and enhance opportunities for the growth of national exports, thus achieving the national goal of doubling the UAE’s GDP over the next decade.

Moreover, the Economic Integration Committee meeting reviewed the growth rates achieved by the UAE economy in 2021, as the GDP recorded a growth of nearly 3.8 per cent exceeding international expectations, and surpassing other regional economies. The gross domestic product for the year 2021 at constant prices amounted to AED 1.492 trillion, and at current prices AED 1.489 trillion. Meanwhile, FDI inflows to the UAE registered a growth of 3.9 per cent to amount to nearly AED 76 billion (USD 20.7 billion). These figures confirm the strength and flexibility of the UAE national economy, the attractiveness of the business and investment environment in the country, and what it provides to the global investment community in terms of integrated and leading competitive advantages and incentives.

The Committee was also briefed on the efforts of the team concerned with raising productivity in the economic sectors to continue improving macroeconomic indicators. Additionally, the meeting discussed plans that will be worked on during the next phase in order to build on the country’s recent economic achievements and gains.

The meeting further reviewed the workflow and achievements of several of its working teams, including the tax non-compliance team and its efforts in regulating e-commerce activities through social media platforms and developing their registration and licensing mechanisms with the competent local authorities. The Committee also reviewed the efforts of the working group concerned with educating companies and executives in the UAE’s private sector about the federal economic legislation and the development of the new economic model to enhance confidence in the national economic environment and raise its rankings on global competitiveness indicators.